GFD information on transfer of heat and cold to 10% VAT rate

In its information effective from 1 January 2020, the General Financial Directorate (GFD) draws attention to the rules of determining the date of supply for the delivery of heat and cold. It provides examples how to technically solve the settlement…

VAT: Correction of tax base for irrecoverable debts in detail

The amended wording of the VAT Act effective from 1 April 2019 introduced significant changes concerning corrections of the tax base in respect of irrecoverable receivables. The General Financial Directorate (GFD) has now published detailed…

Double taxation treaty with Korea in effect from January

A new double taxation treaty, which entered into force at the end of 2019, replaces the original document from 1992. Concerning tax withheld at the source, it applies already to income paid or credited at 1 January 2020, hence requiring a very rapid…

Tax rate package published in Collection of Laws on New Year’s Eve

Just before Christmas, the Chamber of Deputies overruled the Senate and passed the original version of the tax rate package, which was then published on 31 December 2019 under No. 364/2019 and amends certain tax laws in connection with a plan to…

Amendment to VAT Act for 2020: EC explains call-off stock arrangements

At its January session, the deputies’ chamber will discuss the amendment to the VAT Act introducing quick fixes in its second reading. Most neighbouring countries managed to implement the quick fixes before 1 January 2020. At the end of December…

New environmental challenges for businesses

At the end of 2019, the Ministry of Industry and Trade announced another wave of calls within the Enterprise and Innovation for Competitiveness Operational Programme (OPPIK) focusing on energy savings and the efficient use of energy. The new…

Subsidies for large businesses after 2020

In the 2021-2027 period, the Competitiveness Operational Programme (COP) will follow up upon the Enterprise and Innovations for Competitiveness Operational Programme (EIC OP), managed by the Ministry of Industry and Trade. The programme will…

New government programmes for migration of foreign workers

Starting in September 2019 and in connection with changes to the Act on Residence of Foreign Nationals in the CR, government programmes facilitating the hiring of foreign workers have also been under revision. The most crucial change is the…

Government approves digital services tax

The government submitted a bill introducing a 7% digital services tax to the Chamber of Deputies. The tax will apply to companies that are part of corporate groups generating a turnover of more than EUR 750 million and with a tax base relating to…

Quick fixes: consignment stock arrangements from January 2020?

The amendment to the VAT Act implementing quick fixes will not be effective from 1 January 2020, since the Chamber of Deputies is yet to discuss it even in its first reading. So how should Czech VAT payers involved in the intra-community supply and…

Rounding after amendment to VAT Act

The financial administration published information intended to solve the long-standing uncertainty regarding the correct calculation and subsequent rounding of VAT. The new rounding rules have been approved via the last amendment to the VAT Act, in…

Amendment to VAT Act for 2020 (quick fixes): new developments in Brussels

The European Commission has published extensive draft explanatory notes on quick fixes. These include examples of how to declare changes in customers or refunds of goods within consignment (call-off) stocks in EC Sales Lists and new stock records,…